S&P 500 Index in Quarterly Drop of 14%; Kodak Plunged 52%

Bikram Pandey
30 Sep, 2011
New York City

U.S. indexes closed at their lows in the month and plunged more than 13% in the quarter. The weakness in the market was rooted in the weakening economic data and persistent worries on the euro zone. Eastman Kodak is said to weigh bankruptcy and sell patent portfolio.

[R]4:10 PM, Sept 30, New York – U.S. indexes closed at their lows in the month and plunged more than 13% in the third quarter. The weakness in the market was rooted in the weakening economic data and persistent worries on the euro zone. Eastman Kodak is said to weigh bankruptcy and sell patent portfolio.[/R]

U.S. and global indexes plunged after the weak economic data overshadowed the market sentiment.

Resurgent inflation in Europe, weak retail sales in Germany and weak manufacturing gauges in China and South Korea indicated weakening economic scenario. Personal income in the U.S. slid 0.1% but spending rose 0.2% in August.

For the week the S&P 500 index declined 0.4%, fell 6.7% in September and plunged 14.3% in the quarter ending in September. The Nasdaq index dropped 13%, and fell 6.2% in September and decreased 2.7% in the week.

Eastman Kodak Company plunged 52% after the camera and medical imaging maker is said to prepare bankruptcy filing that may facilitate the sale of its patent portfolio.

In corporate earnings, AZZ second quarter net income fell to $9.61 million. Ingersoll-Rand revised its third quarter and full-year revenues guidance. Lumber Liquidators narrowed its outlook for fiscal 2011. Micron Technology reported unexpected fourth quarter net loss of $135 million.

European indexes declined after German retail sales declined, euro zone inflation accelerated and France reported higher government debt. Hochtief’ Australian subsidiary Leighton sold parts of Australian iron ore business to BHP for €512 million.

Euro-zone annual inflation rose in September and jobless rate remained flat in August. German retail sales slumped 2.9% in August. French public debt and Denmark economy grew in the second quarter. Norway’s jobless rate slipped to 2.5% in September and Italy’s rate decreased to 7.9%.

The UK indexes closed lower and consumer confidence rose in September. Ireland based Ingersoll-Rand plunged 14.5% on weak third quarter and fiscal year 2011 outlook.

Stocks in Japan were flat and investors turned cautious after weak global sentiment. Industrial production increased for the fifth month in a row and labor force declined to the 1987 level, just under 59.4 million people.

Electric harness makers for automobiles, Furukawa, Fujikura and Sumitomo Electric plunged on price fixing charges worries. Subprime lender Promise soared 18% after Sumitomo Financial Group offer to participate in the public offering.

Australian stock closed flat after a volatile session. At the end of the week the benchmark index added 2.7% and in September the index declined 6.1%. Australian home prices declined 0.4% in August.

Commodities, Bonds and Currencies

The 10-year U.S. bond yield closed down to 1.90% and 30-year U.S. bond decreased to 2.95%.

The U.S. dollar decreased to $1.341 to one euro and closed higher against the Japanese yen to 77.07 yen.

Immediate delivery futures of Texas crude oil decreased $3.10 to $79.04 a barrel and futures of natural gas decreased 0.07 cents to $3.675 per mbtu and gasoline price increased 0.68 cents to 262.60 cents a gallon.

In metals trading, copper decreased 10.85 cents to $3.13 per pound, gold added $7.30 or 0.5% to $1,624.60 per ounce and silver increased $0.51 to $30.01.